[비즈한국] Netflix saw a significant decline in its new subscriber count for the first quarter of this year compared to the same period last year. According to foreign media reports, including the Wall Street Journal (WSJ) on the 21st (local time), Netflix announced that it added approximately 4 million subscribers in the first quarter of this year. This figure falls short of the initial forecast of 6 million and is significantly lower than the 15.8 million subscribers the company secured in the first quarter of last year.
By region, 1.8 million people newly subscribed to Netflix in Europe and the Middle East, while 1.4 million subscribers were secured across Asia. Additionally, 360,000 people signed up in Latin America, and 450,000 joined in the United States and Canada. The current total number of subscribers stands at approximately 208 million.
The WSJ analyzed the reasons for Netflix's slowdown in subscriber growth, stating, "Consumers are boldly venturing outdoors due to COVID-19 vaccinations. Airlines are anticipating a resurgence in summer travel. Movie theaters, concert halls, and similar venues are reopening in New York and Los Angeles. Restaurants and hotels, which were hit hard by the spread of COVID-19, are strengthening their hiring," and added, "Furthermore, competition with other online streaming service providers such as Walt Disney's 'Disney+' and AT&T's 'HBO Max' has intensified."
However, Netflix explained, "We do not believe that the intensity of competition was a significant factor (in the decrease in subscribers). Existing subscriber numbers are meeting expectations," adding, "We judge that these results are due to the fact that subscriber growth was front-loaded last year due to the spread of COVID-19, and the production of new content was delayed in the first half of this year."
Netflix projected that it would secure 1 million subscribers in the second quarter, compared to the 10 million seen in the same period last year. Furthermore, Netflix stated it expects that content returning with new episodes, such as 'The Witcher' and 'You,' will help increase subscriber numbers in the second half of the year. Netflix forecasted that it would spend over $17 billion (approximately 18.989 trillion won) on content this year.
Meanwhile, Netflix's first-quarter performance exceeded expectations. Net profit for the first quarter of this year was $1.71 billion (approximately 1.906 trillion won), an increase from $542.2 million (approximately 604.3 billion won) in the same period last year. First-quarter revenue also rose slightly to $7.16 billion (approximately 7.9798 trillion won) from $6.64 billion (approximately 7.4003 trillion won) in the same period last year.